The "Limbo" song lyric asks: "How Low Can You Go?" That seems to be a valid question for FED Chairman Ben Bernanke these days. He hinted yesterday about another lowering of the prime rate which, again, sunk the value of the United States dollar to a new low.
The mortgage bankers received a bailout which kept the obscenely inflated stock market from the inevitable crash last month. Bernanke cut rates twice during that period which stopped declines temporarily.
How long can multi-billionaires and Bush cronies continue to manipulate our markets to keep the inevitable from happening? How low can the dollar go? How low can the prime rate go? Mr. Bernanke only has a few points left before he reaches our "ground zero" financially. It will set a new precedent if he reduces the prime rate into the negative. Although it would definitely spark the economy if the wealthy Americans and corporate interests who benefit from the lower prime rate could borrow money without interest. I guess when the prime rate reaches -.1, the government would pay the wealthiest Americans to borrow money. Interesting development!
The problem with continuing to pump air into the Titanic is: IT'S TEMPORARY! The gash in the hull of the American mortgage system can't be repaired. More water continues to flow in than the Bush billionaires can pump out. Foreclosures, $4 per gallon gasoline (spurred by $100 per barrel costs) and the continued corruption, arrogance and greed of this administration can't be repaired with rate cuts. Buoyancy of our financial institutions can't be sustained by patching the holes in America's hull with duct tape.
Before long $100 will buy a barrel of oil or ONE Euro or ONE loaf of bread!